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---------- Forwarded Message ----------
Date: Monday, June 19, 2000, 9:55 AM -0400
From: Faulkner Telecom Weekly <telweekly@faulknerinfo.com>
To: ???
Subject: Faulkner Telecom Weekly June 16, 2000


Telecom Weekly 

June 12, - June 16, 2000 


Top Story of the Week

Bell Atlantic-GTE Awaiting FCC Approval (06/16/2000) 
The FCC is expected to give Bell Atlantic and GTE the green light to close
their merger any day now. According to the Washington Post, four of the
five members on the review board support the merger, and it is only a
matter of hours before the agency gives Bell Atlantic and GTE its blessing,
in turn creating the largest telecommunications company in  the US. The new
company, to be known as Verizon Communications, will control 63 million
telephone lines in 31 states and the District of Columbia, or about
one-third of all telephone lines in the US. Verizon Wireless will also gain
4 million wireless customers from the deal, giving the unit a total
customer base of 25 million in 96 of the top 100 markets. Verizon Wireless
now has twice as many subscribers as its closest competitor, AT&T Wireless.
Verizon Communications will launch a massive marketing campaign as it sheds
the well-known monikers of Bell Atlantic and GTE and introduces new
services. The new company will put an emphasis on offering competitively
priced bundled communications plans, blending together local, long
distance, wireless, and Internet services to attract new customers. To
secure regulatory approval for the deal, the companies agreed to spin-off
90.5 percent of Genuity, formerly GTE Internetworking. Verizon
Communications will retain a 9.5 percent stake in the company, with the
option of increasing its stake to 79.5 once Bell Atlantic is permitted to
offer long distance services within its 13-state region. Bell Atlantic is
already offering residential and business long distance services in New
York, with applications pending in the remaining states. 


Acquisitions, Mergers, and Divestitures
AT&T Completes Acquisition (06/16/2000) 
AT&T finalized its acquisition of MediaOne, making it the nation's largest
cable provider. MediaOne will be bundled into AT&T's Denver-based cable
unit, and the MediaOne name will be replaced with the AT&T Broadband
moniker within the coming months. 

DT Has Cash to Spend (06/16/2000) 
Feeling confident of his company's position in the market, Deutsche Telekom
CEO Ron Sommer told reporters that the company has 100 million Euros to
expand internationally and that no US telecommunications company is beyond
its reach. After merger negotiations failed with partners Qwest
Communications and US WEST earlier this year, DT was rumored to be
interested in SBC Communications, Bell Atlantic, and Global Crossing; but
nothing panned out. Sommer also announced that the company plans to sell $8
billion of bonds to be used to acquire 3G mobile telephone licenses;
however, he would not say if the company would participate in the upcoming
US wireless auction. 

BellSouth Expands Wireless Latin American Footprint (06/16/2000) 
Having acquired a controlling interest in cellular provider Celumovil,
BellSouth will establish the first nationwide wireless footprint in
Colombia. Several agreements cobbled together will create BellSouth's
Colombian wireless operation. Celumovil agreed to buy wireless operator
Cocelco, and BellSouth will buy the Celumovil shares owned by AT&T Wireless
Services and Chase International Finance Limited. BellSouth's US $370
million dollar deal for the purchase of Celumovil awaits regulatory
approval. 

FT Denies Equant Acquisition Talks (06/15/2000) 
France Telecom's Chairman, Michel Bon, told CNBC TV that his company was
not involved in negotiations to acquire Equant. Equant's poor financial
performance during the first quarter has made it a likely takeover target,
and reports earlier this week suggested that FT and Global Crossing were
ready to strike. The Wall Street Journal reported that France Telecom and
Global Crossing were each negotiating a deal with the data network
operator, but talks with France Telecom were moving more swiftly. Both
companies were believed to be preparing to place a bid of approximately $10
billion. Other rumors had the two companies joining forces to acquire
Equant. Equant would be a good strategic fit for France Telecom, as the
Equant network would complement the one operated by France Telecom's Global
One. Deutsche Telekom also is rumored to be interested in acquiring the
company. 

Time Warner/GST Deal Off (06/15/2000) 
Time Warner Telecom's proposal to acquire most of bankrupt GST
Telecommunications' assets was taken off the table after the two parties
could not come to terms over a deal. The assets now will be auctioned off,
pending the approval of the Delaware Bankruptcy Court overseeing the
company's Chapter 11proceedings. 

BCE May Lower Teleglobe Offer (06/15/2000) 
BCE said it is considering a C$9.52-billion offer to acquire the 77 percent
of Teleglobe it does not already own. The company did not say how much the
new offer would be worth. 

Vivendi in Merger Talks with Seagram (06/15/2000) 
Vivendi, along with its pay-TV unit, Canal Plus, is in talks with Canada's
entertainment company, Seagram, over a possible three-way, $30 billion
merger that would create a multinational company with a market
capitalization of $100 billion. Vivendi and Seagram are taking advantage of
changes in the media and entertainment market brought about by the merger
between AOL and Time Warner. If the deal goes through, Vivendi will use its
distribution channels to offer Seagram's media and entertainment services,
including film, TV, and music. 

Sprint CEO Comments on WorldCom Merger (06/15/2000) 
At the company's annual meeting, Sprint CEO William Esrey told shareholders
that he is not sure the company will gain regulatory approval to close its
merger with MCI WorldCom. Esrey said that the Justice Department is
seriously considering its staff's recommendation to block the merger and
that the European Union is likely to follow in the path of the DoJ. Esrey
did not say if the companies would fight the DoJ in court if the agency
decides to block the deal. 

AT&T Invests in SpeechWorks (06/15/2000) 
AT&T purchased a minority stake in voice-recognition company SpeechWorks
and licensed the company to use a wide range of its own technologies. The
companies will also explore the possibility of incorporating their
technologies into an Internet voice portal that delivers content via voice
rather than text. 

Adelphia to Buy Virginia Systems (06/13/2000) 
Adelphia Communications agreed to pay $836 million to buy Virginia-based GS
Communications and another unidentified Virginia cable system. The
acquisitions will arm Adelphia with an additional 155,000 subscribers,
bringing its total subscriber base in the state to about 700,000. The deals
is still subject to regulatory approval and are expected to close in the
fourth quarter of 2001. 

Shareholders OK Sale of HKT to PCCW (06/13/2000) 
Shareholders of Cable &Wireless gave the thumbs up to the company's plan to
sell HKT to Pacific Century CyberWorks. 

BT, Vodafone AirTouch Land Airtel (06/13/2000) 
BT and Vodafone AirTouch agreed to acquire Airtel Movil, the second largest
wireless carrier in Spain. BT will back Vodafone's attempt to raise its
stake in Airtel to 55 percent by acquiring a 30.45 percent stake in the
telco from Banco Santander Central Hispano (BSCH). If this move is
successful, BT will boost its stake from 17.8 percent to 45 percent, and it
will appoint the same number of members to Airtel's management team as
Vodafone does. Airtel holds one of four third-generation operating licenses
in Spain. 

KPN/Telefonica Negotiations Heating up Again (06/13/2000) 
KPN Telecom and Telefonica sat down at the negotiating table one more time
to attempt to hammer out a deal. The firms sent letters to the Spanish and
Dutch governments, asking them to clarify their positions on the deal, and
Telefonica Chairman Juan Villalonga is reportedly trying to convince
majority shareholders to reconsider backing a merger. The initial talks
between the two firms failed after the Spanish government was unwilling to
accept the fact that the Dutch government would have been the largest
shareholder in the combined companies until it divested its stake in KPN.
Also, Spanish banks La Caixa and Banco Bilbao Vizcaya Argentina, which
jointly hold 14 percent of Telefonica, refused to back the deal. KPN has
since linked up with NTT DoCoMo. 

Broadwing Eyes Intermedia Acquisition (06/13/2000) 
Broadwing is reportedly in negotiations to acquire Intermedia
Communications, the largest CLEC in the country, said CNBC. A marriage
between the two companies would make strategic sense. Both firms are
focused on providing data services to businesses, although they do have
voice offerings. Intermedia targets multiple-tenant buildings such as
office and apartment buildings, and it has 90,000 miles of fiber deployed,
with plans to lay an additional 4000 miles by the end of the year. Both
companies declined to comment on the report. 

Broadcom Buying Bluetooth Chipmaker (06/13/2000) 
Broadcom announced that it would buy Innovent, a manufacturer of Bluetooth
chips, for $440 million in stock. Broadcom already owns 13 percent of
Innovent and will issue three million shares for the rest of the company.
The deal brings the tally to 11 acquisitions for Broadcom since 1999. The
company plans to add wireless home networking to cable modems and set-top
boxes using Bluetooth chip technology in conjunction with a modem's or a
box's processor. 


Alliances and Joint Ventures
Nokia Playing Domino (06/16/2000) 
Nokia and Lotus agreed to include Nokia's WAP server with the Lotus Domino
Everyplace Quick Start WAP solution. Lotus' product connects wireless
devices and corporate Intranets. Domino, with the WAP server, converts its
data base information in WML, so it can be accessed through wireless
devices. 

Ericsson Allies with Charles Schwab (06/16/2000) 
Charles Schwab entered into an agreement with Ericsson for the development
of mobile Internet applications for Schwab's wireless investment services.
The companies will develop WAP applications for wireless trading, and
Charles Schwab will use Ericsson's Mobile E-Pay to offer global services. 

US WEST Invests in Wireless Technology (06/16/2000) 
US WEST invested in the "ultra-broadband" wireless technology of start-up
Time Domain. This technology, though still not approved for use within the
US, purportedly handles the available spectrum in a unique fashion that
eases the dilemma of airways bristling with an ever-growing number of
signals. 

Bell Canada, Telmex, SBC to Form New Company (06/16/2000) 
Bell Canada International (BCI) and Mexican telco Telefona de Mexico
(Telmex) agreed to form a new communications company with an initial
capitalization of $3.5 billion. SBC Communications soon joined the deal and
announced that it would contribute its economic interest in ATL, a
Brazilian wireless company. In addition to ATL wireless, the new company's
assets would include BCI's South American assets, Telmex' South American
assets, and $1.8 billion in cash and commitments from BCI and Telmex. 

BellSouth, Nortel Enter Deal for Wireless Network (06/16/2000) 
BellSouth Mobility DCS contracted with Nortel Networks to build a next
generation wireless network in the southeastern US in a deal valued at $200
million over three years. Nortel will supply its S8000 GSM base transceiver
stations, DMS-MSC digital mobile switching, and network management
equipment to promote subscriber growth, to expand service coverage, and to
meet the demands of the wireless Internet. 

Microsoft and Samsung Making Smart Phones (06/15/2000) 
Microsoft signed an agreement with Korea's Samsung to develop
next-generation mobile smart phones. Using the Microsoft Mobile Explorer
wireless communication smart phone platforms, Samsung will create a handset
for GSM and CDMA technology standards. In addition to joint development,
the two companies will work with mobile operators to market and sell the
phones, which should be available by the end of this year. 

Motorola Adding Scanners to Cell Phones (06/15/2000) 
Motorola, Symbol Technologies, and Connect Things formed a joint venture
and are investing a total of $500 million to create company that will meld
bar code and wireless technology. Consumers using mobile phones, set-tops,
or an Internet connection would scan a product's bar code and would be
automatically connected to the Web and needed product information for
e-commerce transactions. 

Interactive TV (06/13/2000) 
Microsoft teamed up with DIRECTV and Thomson Multimedia to market its new
UltimateTV service, which is designed to make television more interactive.
The technology, which integrates digital video recording, Internet access,
and interactive TV, incorporates two satellite tuners from DIRECTV and a
hard disk drive for digital video recording. Current DIRECTV subscribers
will be able to get the UltimateTV service for an additional fee. New
subscribers will have to buy a DIRECTV satellite box, RCA set-top, and
UltimateTV service. Fees have yet to be determined. The product will be
commercially available in the fourth quarter of this year. 

Bell Mobility Hooks up With Excel Canada (06/13/2000) 
Bell Mobility signed an agreement with Excel Canada that will make Excel a
reseller of Bell Mobility wireless services. 

Global One Enters US via Intermedia Alliance (06/13/2000) 
France Telecom's Global One is crossing the Atlantic to break into the US
marketplace, and it enlisted the help of Intermedia Communications to do
so. The two firms inked a three-year agreement to interconnect their
networks so Global One can offer leased line, frame relay, ATM, and IP
services. Intermedia also will provide a number of broadband services to
Global One that will be originated and terminated in the US. Global One was
granted the right to sell its services directly to customers in the US and
Germany only after Sprint and Deutsche Telekom backed out of the three-way
alliance with France Telecom. 

UPC Working on Number of Strategic Deals (06/13/2000) 
United Pan-Europe Communications (UPC) said that it has a number of
potential deals cooking. The company postponed the IPO for its Internet
division, Chello, saying that it is involved in alliance talks with two
carriers and wants to wait to conclude those discussions before proceeding
with the stock offering. The two carriers rumored to be involved in talks
with UPC are Telewest and Excite@Home. The company also said that it
remains in the running to acquire France Telecom's stake in Lyonnaise
Communications. 

Toshiba Announces Wireless Strategy (06/13/2000) 
Toshiba's operations in both the US and Japan are working with hardware,
software, and service partners as part of a strategic global wireless
initiative designed to develop new wireless products. Toshiba formed a
wireless business development group in Japan, and Toshiba American
Information Systems formed a wireless network solutions group in the US. 

QUALCOMM Signs Agreement with Novatel (06/13/2000) 
QUALCOMM forged a CDMA modem card license agreement with Novatel Wireless.
Under the agreement, QUALCOMM granted a worldwide license under its CDMA
technology to Novatel Wireless, which will use the technology and patents
to develop CDMA and High Data Rate modem card products. 


Broadband/Cable Networking
Nortel, Global Crossing Team Up (06/16/2000) 
Nortel Networks signed a deal with Global Crossing to build a pan-European
fiber-optic network. The network will be the first to use DWDM to connect a
ring of cities. The project will start in London, Paris, and Frankfurt. The
deal is rumored to be valued at $500 million, though no figures were
released. 

Time Warner Forges Agreement with SeaChange (06/14/2000) 
In order to support their ongoing rollout of VOD services to its cable
subscribers, Time Warner's cable division signed an agreement with
SeaChange for the implementation of SeaChange's Interactive Television
System. Under the agreement, SeaChange will deliver and implement the
interactive system that is paving the way for the unveiling of more
advanced interactive TV services. 

ALLTEL Buying ADSL Equipment (06/13/2000) 
ALLTEL signed a three-year, $105 million contract extension with Advanced
Fibre Communications for ADSL-ready equipment. ALLTEL is buying the UMC1000
Multi-Service Access Platform from AFC and will supply it to customers
through its product distribution division. The UMC1000 not only provides
ADSL services but also ISDN, T1/E1, HDSL, and SDSL. 

Lucent Working on Plastic Optical Fiber (06/13/2000) 
Lucent Technologies is working on a new plastic optical fiber. The company
said that the fiber will be used for short-distance specialty fiber
applications that require links of under 100 meters. The plastic fiber will
reportedly support higher transmission speeds than conventional plastic
fiber. Lucent is using the CYTOP material developed by Japan's Asahi Glass
Company to develop this line of graded index plastic optical fiber. 

Nortel Introduces PDSN (06/13/2000) 
Nortel Networks unveiled a Packet Data Serving Node (PDSN) platform
designed to link wireline and wireless systems. The service is a packet
data gateway for Nortel Networks' cdma2000 1XRTT wireless architecture. It
allows operators to support one common PDSN platform throughout a network
and provides access to multiple services such as Internet access,
firewalls, and VPNs. 

Virata and Jetstream Work on IAD (06/13/2000) 
Jetstream Communications and broadband communications semiconductor
supplier Virata integrated Jetstream's voice-over-broadband technology into
Virata's Azurite Integrated Access Device (IAD) reference design. Virata
licensed Jetstream's VoiceBand signaling protocol for integration into its
Azurite technology. The Azurite technology is used for Voice-over-DSL
applications. 

Time Warner Maine Deploys Cuda 12000 (06/12/2000) 
Time Warner Cable of Maine deployed the Cuda 12000 IP Access Switch in its
network. Time Warner Cable of Maine provides cable and data services to
100,000 customers in Southern Maine. The integration of the Cuda 12000 will
provide Time Warner's commercial Road Runner customers in Portland, Maine
with additional bandwidth and carrier-class reliability. 


Conferencing
AT&T Enhances TeleConference Services (06/15/2000) 
AT&T is upgrading its TeleConference Services to include Web-based
streaming audio and video capabilities and "reservationless" conferencing.
ConferenceCasting will work with existing audio, video, and data
conferencing services offered by AT&T and will offer a document conference
package that allows for an interactive slide presentation over the Web.
Streaming audio is currently available to AT&T TeleConference customers;
streaming video and the document conference package will be added over the
next few months. AT&T Reservationless Conference Service is available now,
24 hours a day, seven days a week. 


Financial News
Terms Set for GlobalCenter IPO (06/16/2000) 
In a filing with the SEC, Global Crossing set the terms of the IPO for its
GlobalCenter unit. The company will offer 57.5 million common shares in a
range of $16 to $18 per share to generate net proceeds of about $925
million. The funds will be used to finance the expansion of GlobalCenter's
domestic and international data center facilities. Global Crossing also
applied for a Nasdaq listing under the symbol "GCTR." 

US WEST Communications Sells $1 Billion in Notes (06/16/2000) 
US WEST issued $1.0 billion in three-year notes, via co-lead managers
Lehman Brothers and Merrill Lynch. 

VTEL's Revenues Drop (06/15/2000) 
For the third quarter of fiscal 2000, ended April 30, VTEL's revenues
dropped to $31.1 million from $36.1 million for the same quarter in 1999.
Excluding two non-recurring events, consolidated net loss was $8.4 million,
or a per-share loss of $0.33, compared to a net loss of $574,000, or a loss
of $0.02 per share. Including the two events, net income was $35.1 million,
or $1.36 per fully diluted share. 

Infonet Releases 4Q, Fiscal 2000 Results (06/13/2000) 
Infonet Services announced that total revenues for the fourth quarter rose
81 percent over results from the same quarter the previous year to $154.5
million. Net income was $5.5 million, or $0.01 gain per share, compared to
$8.4 million. For fiscal 2000, revenues were up 59 percent to $481.4
million. Net loss was $26.7 million, or $0.06 loss per share, compared to a
net gain of $1.8 million. 


Internet/Intranet
Bell Atlantic Boosts Web Creation Service (06/16/2000) 
Bell Atlantic teamed with Register.com to offer its Web@Once customers the
online option of choosing a domain name and registering it in real time.
Service representatives will aid Bell Atlantic customers with the site
registration process. 

Bell Atlantic Offers InfoSpeed DSL in Maine (06/16/2000) 
Bell Atlantic is offering some Maine business and household customers the
option of DSL Internet access. Service start-up will not require a
technician visit and will be available in 16 metropolitan areas. Entry
level packages were tagged at $49 per month for consumers and $64.95 per
month for business customers; the start-up kit goes for $99. 

BellSouth, LightNetworks to Offer e-Bonding (06/16/2000) 
Following testing and certification, BellSouth authorized LightNetworks, a
voice-over-DSL provider, to use electronic data interface (EDI) for the
transmission of service orders, confirmations, and order status updates.
LightNetworks looks to this process, dubbed e-bonding, to boost efficiency,
to allow faster customer provisioning, and to speed its orders for
unbundled network elements from the RBOC. 

Eight New Co-Locations for North American Telecom (06/16/2000) 
North American Telecommunication (NATELCO) and its Long Island Telephone
and Southeast Telephone affiliates completed eight additional co-locations
at Bell Atlantic and BellSouth facilities in New York City, Westchester
County, Queens, Brooklyn, Long Island, and Miami. NATELCO is a provider of
voice, data, and Internet communications to business. These installations
will allow NATELCO to offer high-speed data Internet service to nearly
43,000 additional businesses. 

Terra Networks Goes Live W/ Venezuela Portal (06/15/2000) 
Terra Networks, the Internet division of Telefonica, activated its
Venezuelan Web portal. 

ITXC Announces Record Day (06/15/2000) 
ITXC's webtalkNOW!, which provides Web-to-phone service through ITXC.net,
recorded one million minutes in one day. In addition to the record, ITXC
added HotTelephone.com as a customer of webtalkNOW! HotTelephone.com
provides Web-to-phone calls using a PC and a Java applet. 


IXCs
Sprint Offering Cisco on the Net (06/15/2000) 
Sprint is offering Cisco products to its business customers online at
www.sprint.com/ciscoonline using Cisco's Equipment Configurator. The
Equipment Configurator electronically checks the interoperability of
selected products to ensure compatibility. Consumers that purchase Cisco
products through Sprint will also have access to the SMARTnet maintenance
service that provides 24x7 customer service. 

Sprint Introduces Block of Time Offering (06/15/2000) 
Sprint introduced Block of Time (BOT) for Small Business, a flat-fee long
distance plan that caters to small businesses that spend between $50 to
$1500 per month. The BOT plan combines domestic long distance services,
interstate, intrastate, and intraLATA calls, inbound too-free calls, mobile
phone long distance, and residential services without the constraints of a
contract. Sprint also offers All Calls All Day, which offers per-minute
rates for interstate, intrastate, and international calls. 


Legal News
Lockheed Settles Lawsuit (06/16/2000) 
The federal government settled its case against Lockheed Martin concerning
the violation of arms export laws by the company. Lockheed was charged with
violating the law when it exchanged information about "kick motors," which
are used to lift satellites into final orbit, with China's AsiaSat. The
government believes that China can use this information to aid in the
development of missile technology. As a result of the settlement, Lockheed
is paying a $13 million fine, and its future international business
activities will be regulated under the Arms Export Control Act. 

Iridium Facing Lawsuit (06/15/2000) 
Members of the failed satellite venture Iridium are being sued by Chase
Manhattan Bank for $242.7 million. The bank claims that, in 1999, the 17
members defaulted on loan payment plan obligations, which included buying
units of Iridium in the case of a loan payment default. In May of this
year, the stay on lawsuits against Iridium was lifted, allowing Chase
Manhattan to go ahead with its suit. It seeks damages from Iridium's
international units as well as Sprint Iridium, Nippon Iridium, Motorola,
Verbacom, and others. Castle Harlan's $50 million rescue bid should not be
affected by the lawsuit. 


Personnel and Organizational Changes
Stephen E. Pazian Joins IJNT.net/UBNetwork Board (06/16/2000) 
Integrated communications provider IJNT.net, soon to be known as Universal
Broadband (UB) Networks, named Stephen E. Pazian to its board of directors.
Pazian held CEO or COO positions with Edison International, Ameritech,
BellSouth, and Bell Atlantic. 

Ericsson Opens Wireless Center (06/15/2000) 
Ericsson opened its Berkeley Wireless Center to support the development of
mobile Internet applications, including the Mobile Applications Initiative,
which allows Ericsson to work with developers. Companies such as 724
Solutions, Oracle, and Palm already demonstrated mobile Internet
applications in tests conducted at the Berkeley Center. 

PictureTel CFO Resigns (06/15/2000) 
Arthur L. Fatum stepped down from his post of CFO at PictureTel to accept a
position with another company. PictureTel appointed Ralph Takala, a
principal of Altman and Company, interim CFO, effective immediately.
PictureTel will search for a permanent CFO toward the end of the summer. 

PointOne Appoints Former Sprint Exec (06/15/2000) 
Paget Alves, former president of sales and support at Sprint Communications
and an executive with Sprint's wholesale group, was named president and CEO
at PointOne Telecommunications. 

Telstra Cans Employees for Eavesdropping on Calls (06/13/2000) 
Telstra fired four technicians for listening in on customer's telephone
conversations, said the Australian Broadcasting Corporation. Amazingly
enough, the Australian Federal Police are not sure whether eavesdropping on
private telephone conversations is illegal or not, and it is conducting an
investigation to determine the legal ramifications of the employees'
actions. 

Infonet Adds Two to Board (06/13/2000) 
Infonet Services appointed Timothy Hartman and Matthew O'Rourke to its
board of directors. 


RBOCs
Flat Rate for BellSouth Wholesale Customers (06/16/2000) 
Bell South Interconnection Service, the wholesale unit of BellSouth,
offered its customers a plan dubbed Managed Shared Packet Services (MSPS).
The flat-rate pricing plan combines BellSouth frame relay or ATM network,
port, loop, and transport within a metropolitan service area. Wholesale
customers such as IXCs and CLECs can use MSPS to aggregate their data
traffic in the most efficient manner for effective cost cutting. Also, long
term commitments to the service can mean discounts up to 54 percent for
customers in the $2-million to $5-million dollar brackets. 

BellSouth Wires New Homes for the Future (06/16/2000) 
BellSouth now works with builders and developers within its nine-state
region to install advanced wiring in new homes and apartment units. The
BellSouth Digital Passport Services structured wiring program integrates
voice, high-speed data, video, security, and home automation in one
networked service. The system includes state-of-the-art home wiring, a
central distribution panel, and "every-room" receptacles providing access
to three types of wiring; high-speed phone lines, fiber-optic cable, and
coaxial cable. 


Regulatory News
Oftel Releases Service Standards for BT (06/16/2000) 
Oftel, Britain's telecom watchdog, released its recommendation of service
standards for British Telecom's calls and access service. The standards
will ultimately allow rival telecom firms to market services over BT's
network. Oftel said that if the industry can not independently reach an
agreement, the agency will use its powers to set the standards.

Senate OKs Phone Tax Repeal (06/16/2000) 
Unlike the House of Representatives, which approved a three-year phasing
out of the three percent phone tax, the US Senate Finance Committee
approved a repeal of the tax, effective September 1. The Senate included a
provision that requires the General Accounting Office and the FCC to report
in one year on how the repeal of the tax has been passed to consumers. 

US WEST/Qwest Deal Closer to Completion (06/16/2000) 
Minnesota regulators unanimously approved the US WEST/Qwest merger. Within
hours, regulators in Wyoming and Utah added their approvals. In all
instances, the US WEST/Qwest officials indicated the merged company's
commitment to the network infrastructure within the states granting
approval. Only Arizona and Washington are left to grant approval. Federal
approval has already been secured, pending certain long distance
divestitures.

SBC Edges Closer to Long Distance Approval in Texas (06/16/2000) 
The US Department of Justice approved SBC Communications' application to
offer its Texas customers long distance services. In its latest filing, SBC
addressed the anti-competitive concerns expressed by the DOJ when it denied
an earlier SBC petition. Final approval for SBC's long distance bid is
expected from the FCC in July and will boost the company's ability to offer
customers a comprehensive, bundled communications package. 

Japanese FTC Calls for More NTT Restructuring (06/15/2000) 
A report published by the Japanese Fair Trade Commission said the
restructuring of NTT that occurred in July 1999 is not producing the
competitive results that were expected, and it calls for the telco giant to
lower its stake in NTT DoCoMo. The report also said that the FTC will have
to "examine the structure of the holding company and its group
subsidiaries," if competition does not increase, suggesting that further
breakup of the company may loom on the horizon. 

Japan, US to Reopen Interconnection Talks in July (06/13/2000) 
Officials from the US and Japan agreed to restart talks in early July
concerning the dispute over NTT's interconnection rates. Prime Minister
Yoshiro Mori said that he wants the issue settled before a Japanese-hosted
summit begins on July 21. 

Japanese PM Calls for Privatization of NTT (06/13/2000) 
In a campaign speech, new Japanese Prime Minister Yoshiro Mori said,
according to the Wall Street Journal, that he will seek to privatize
incumbent telco NTT. The government is required by Japan's telecom law to
hold at lease 33.3 percent of NTT, and it currently owns 59.1 percent.
Going private could present huge opportunities for NTT. The company is now
required by law to offer any services that it is testing on a nationwide
basis, and it must ask government permission to issue new shares to fund
acquisitions. Some analysts believe that Mori's statement is nothing more
than political posturing as Japanese elections are slated for June 25. 

Comcast/RCN Compete for Market Share (06/12/2000) 
RCN and Comcast are locked in a heated competition for cable TV and
high-speed Internet access customers. The upstart company, RCN, is hoping
to win the Philadelphia cable industry market to complete its East Coast
market, which includes Boston, New York, and Washington. Comcast, the
dominant cable company in the Philadelphia region, is looking to expand its
own market share in the area. Both companies have launched massive
marketing campaigns in Ridley Township and Folcroft Borough, vying for a
piece of the cable pie through promotions, phone calls, and door-to-door
sales calls. In its effort to fend off the newcomer, Comcast is offering
customers in these and other RCN targeted areas, 18-month contracts with no
price increases, and only a $75 cancellation fee. Comcast also upgraded its
networks to offer customers expanded services like digital cable and
high-speed modems. In turn, RCN is pitching product bundles that bring
consumers extra channels, full-featured telephone service, and high-speed
Internet access at significant savings. The city of Philadelphia has not
yet given RCN a contract to build a cable network in the area. 


Security
Trend Micro Adds Content Security to Domino R5 (06/14/2000) 
Trend Micro shipped ScanMail 1.9 for Lotus Notes on S/390 and AS/400.
ScanMail 1.9, designed for use by large and mid-sized businesses, detects
and cleans viruses from Notes mail, shared databases, and during Notes
replication. The service can deliver customizable virus warnings to
senders, recipients, and administrators. It can be remotely managed from
any Notes workstation or browser. 

AXENT Unveils Prowler IDS Series (06/13/2000) 
AXENT Technologies introduced its Prowler IDS Series. The offering includes
the company's NetProwler 3.5 and Intruder Alert 3.5, and features combined
host and network-based intrusion detection. The Prowler uses consoles that
allow administrators to "drag and drop" security policies and attack
signatures into pre-defined groups of systems within specific business
functions, such as intranet servers. 

Symantec Unveils Norton Personal Firewall 2000 (06/13/2000) 
Symantec released Norton Personal Firewall 2000, which is designed to
protect home PC users of the Internet. The firewall includes features such
as the ability to prevent Web sites from downloading specific or all Java
applets and ActiveX controls. It also supplies event logs detailing
intrusion attempts, the IP address of potential hackers, and authorized
connections. The Norton Personal Firewall 2000 can maintain a user's
anonymity while on the Web by blocking cookies on a per-site basis. 


Wireless Communications
Motorola Working on Bluetooth Video (06/16/2000) 
Motorola and JVC are developing Bluetooth technology for wireless video
transmissions between digital devices such as cameras and DVD players. The
new technology will accommodate larger amounts of data than Bluetooth
technology for wireless phones. 

Nokia Signing WAP Contracts in China (06/16/2000) 
Nokia signed contracts with four branches of China Unicom to supply its
Artus Messaging Platform, which allows the companies to provide WAP
services to mobile subscribers. The Artus Messaging Platform is a gateway
between the Internet and mobile phones. 

Sprint PCS Carrying AOL (06/16/2000) 
Sprint PCS is providing a wireless Internet service from AOL on its
Wireless Web. Sprint PCS phone users will be able to access AOL through AOL
Mobile services, which offers e-mail, news, weather, stock information, and
content from Digital City and MovieFone. 

Ericsson Providing Network Expansion in Tunisia (06/16/2000) 
Ericsson was contracted by Tunisie Telecom to expand the company's national
GSM 900 network. The $50 million contract includes delivery of a GSM 900
network infrastructure, a GPRS system, PrePaid functionality, and a Fraud
Management System. Tunisie Telecom will use the equipment to service over
300,000 Tunisian subscribers. 

Firms Lining up for 3G License in Italy (06/15/2000) 
The following companies expressed interest in throwing their hats into the
ring when Italy begins tendering offers for its five third-generation
wireless licenses: Telecom Italia Mobile, Omnitel, Wind, Blu, Deutsche
Telekom, Andala, Dix.it, Telefonica, TU TLC Utilities, TIW UMTS, and the
allied NTT DoCoMo and KPN. 

Philips Is True Blue (06/15/2000) 
Philips Semiconductors introduced its Bluetooth radio module called
TrueBlue. TrueBlue is a plug-and-play radio module used for cellular and
multimedia applications. It operates in the ISM band between 2402 MHz and
2480 MHz and is compliant with Bluetooth radio specifications. Philips'
TrueBlue joins the company's Bluetooth-compliant chipsets, controllers, and
RF amplifiers. 

Lucent Signs Agreement with Verizon Wireless (06/15/2000) 
Lucent Technologies signed a $1.5 billion deal to expand Verizon Wireless'
network infrastructure. Verizon Wireless will use the expanded network to
increase capacity and to offer third-generation high-speed mobile Internet,
data, and voice services in its major markets. This deal expands on an
existing relationship between the two companies, which are working together
on CDMA wireless technology for Verizon Wireless' network. Lucent and
Verizon are able to develop the technology because of Lucent's partnership
with CDMA developer QUALCOMM. In other news, Lucent is planning a $40
billion spin-off of its Microelectronics unit. 

Nortel Awarded $200 Million Contract (06/15/2000) 
BellSouth Mobility awarded Nortel Networks a $200 million contract to build
a next-generation wireless network using GSM technology. Under the
contract, Nortel will deliver S8000 GSM base stations, DMS-MSC digital
mobile switching, and network management. BellSouth will use this equipment
to offer wireless Internet services. 

WebLink Joins with MobileSys (06/15/2000) 
WebLink Wireless forged an agreement with MobileSys to develop and expand
wireless data services for enterprises. MobileSys will merge its MX two-way
messaging network solutions with WebLink's wireless network to create an
international messaging solution for corporate users. 

Mitel Introduces Bluetooth Chip (06/14/2000) 
Mitel Semiconductor, a division of Mitel, unveiled the industry's first
Bluetooth-based chip. The ultra-low power MT 1020 is a baseband controller
that includes a full-duplex audio CODEC. The MT 1020 is a Bluetooth
compliant processor comprised of a microphone amplifier and an earpiece
driver; it is filter-compliant to the standard voice traffic device. The
chip performs voice and data processing in Bluetooth applications and is
based on an optimized architecture for voice traffic. The chip will be
available in sample quantities in August 2000; mass production will begin
in November. 

Japan Issues Trio of Temporary 3G Licenses (06/13/2000) 
The Japanese Ministry of Post and Telecommunications awarded temporary
third-generation operating licenses to NTT DoCoMo, Japan Telecom, and DDI.
The companies will use the licenses to develop IMT-2000 services to deliver
wireless voice, data, and video services. If the trials of these services
are successful, the licenses will convert to permanent ones. 

QUALCOMM Hopeful for CDMA (06/13/2000) 
Despite China Unicom's refusal to accept QUALCOMM's CDMA technology for its
current generation of mobile devices, QUALCOMM believes that the company
will accept the standard for its 3G mobile devices once they are launched.
CDMA will provide faster data and graphics transmissions. 

SBC Wireless Launches Digital Edge (06/13/2000) 
SBC Wireless introduced its national, flat-rate calling plan called Digital
Edge USA, which offers monthly rates starting at $25. The company is
offering the calling plan through its properties: Pacific Bell Wireless,
Southwestern Bell Wireless, SNET Wireless, Nevada Bell Wireless, Radiofone,
Ameritech Cellular, and Cellular One. Digital Edge USA also includes six
plans without long distance or roaming charges. 

AT&T Testing Wireless Technology in Silicon Valley (06/13/2000) 
Using GPRS technology from Mitsubishi, Motorola, and Nortel Networks, AT&T
Wireless is testing 3G wireless technology for high-speed wireless data.
The company is working to develop applications that will be compatible with
EDGE technology, which provides data transfer rates of 384K bps. 

Ericsson Introduces WAP Over Bluetooth (06/13/2000) 
At the Bluetooth Congress in Monte Carlo, Ericsson and Red-M will
demonstrate WAP over Bluetooth technology. Red-M joined Ericsson's
Developer Alliance Program, and the two companies are combining WAP and
Bluetooth to provide wireless Internet and intranet access through mobile
phones. 

Motorola to Release Bluetooth Products (06/13/2000) 
In cooperation with companies such as IBM and Toshiba, Motorola is
introducing its Bluetooth wireless products for short-range connections
between computers and electronic devices. IBM and Toshiba will be selling a
Bluetooth attachment with their computers to allow short-range radio
signals to be passed to digital cameras, printers, and other devices
without cords or wires. In addition, Motorola is introducing its Bluetooth
car kit, designed to connect the mobile phone with other electronic systems
within the vehicle. 

AOL to Battle with Wireless Companies (06/13/2000) 
With the major wireless companies upgrading their networks to provide
high-speed Internet access, AOL's own wireless endeavors will soon clash
with other carriers' offerings. Wireless companies such as Verizon Wireless
are looking to the wireless Internet as the next major market, and so does
AOL. Since AOL needs phone companies for its Internet service, this
competition could result in tension and conflict between AOL and the major
wireless carriers. 

Ericsson Introduces Packet Core Network (06/13/2000) 
Ericsson introduced its Packet Core Network for its cdma2000. The Packet
Core Network is part of the change from circuit-switched networks to
third-generation packet-switched networks. It provides IP services from
end-to-end in the cdma2000 network. 

Motorola Wins Chinese Contracts (06/13/2000) 
Motorola won two contracts for digital cellular network equipment in China.
Hubei Mobile Communications awarded the Network Solutions Sector a $55
million contract to replace its GSM digital cellular network. Motorola's
NSS also won a $10-million contract to deliver a new digital cellular
network to Guangxi Mobile Communications.

Nokia Wins Expansion Deal from Telsim (06/13/2000) 
Telsim Mobil contracted Nokia to expand its GSM 900 network from for $900
million, the biggest order for Nokia's network equipment. In the next three
years, Nokia will deliver its network equipment to Telsim, which will use
the upgraded network to serve 1.5 million prepaid customers, adding to the
3 million prepaid customers already served by Telsim's GSM network. By
2001, Nokia expects the number of Turkey's mobile subscribers to grow by
almost 50 percent. Deals such as this help Nokia gain on Ericsson within
the networks market. 

  

Comments or suggestions about Telecom Weekly may be sent to Tammy Boyle.

   

  

  

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